Stoke close in on Dann and Jerome deal
The Potters had been monitoring the availability of the pair since Birmingham’s relegation to the Championship at the end of last season, offering £16 million to sign both players.
Numerous other clubs are rumoured to be interested in ensuring Dann, 24, remains a Premier League footballer next season, with Tottenham Hotspur, Liverpool and Arsenal reportedly keen to secure the player’s signature.
Speaking about the impending signings of Jerome and Dann, Coates was cautiously optimistic.
"We have made an offer and are hoping to do a deal that will satisfy both clubs," he said.
He explained that even though the deal appears to be near completion, there could yet be a last minute hitch.
"It is my understanding we were very close to a deal but then you still have to sort things out with the players. These things can take forever.
"You have to have other irons in the fire because so many things can go wrong. Sometimes you think you have a deal and it doesn't happen.
"As one agent once said, ‘The truth today may not be the truth tomorrow’."
If personal terms can be agreed with both players, Dann and Jerome will become Stoke City’s first signings of the summer.
However, for Birmingham, this represents the continued drain of talent from their squad which has already lost Sebastian Larsson and Craig Gardner to Sunderland and looks set to lose a number of other first-team regulars including Ben Foster and Nikola Zigic.